Insightful Word
  • Investing
  • Stock
  • Economy
  • Politics
  • Investing
  • Stock
  • Economy
  • Politics
No Result
View All Result
Insightful Word
No Result
View All Result
Home Stock

Morgan Stanley makes changes to its growth portfolio: 2 stocks added and 2 removed

admin by admin
October 4, 2024
in Stock
0
Morgan Stanley makes changes to its growth portfolio: 2 stocks added and 2 removed
0
SHARES
5
VIEWS
Share on FacebookShare on Twitter

Investing.com — Morgan Stanley made adjustments to its US All Cap Growth Portfolio on Friday, adding two stocks while removing two others.

Specifically, the Wall Street firm added positions in DoorDash (NASDAQ:DASH) and GE Vernova LLC (NYSE:GEV), citing growth potential and alignment with key themes, while reducing exposure to Adobe (NASDAQ:ADBE) and completely removing UnitedHealth Group (NYSE:UNH).

Morgan Stanley introduced DoorDash to its portfolio to gain exposure to the leading food delivery company in the U.S.

According to the note, DoorDash’s three-sided network, which connects customers, merchants, and delivery contractors, positions it well for continued growth. With approximately 60% market share, DoorDash has emerged as the top player in the sector, Morgan Stanley notes.

Moreover, the bank’s analysts also highlighted the stock’s “attractive valuation given multiple growth drivers” and its potential for expanding EPS growth.

They rate DoorDash as Overweight, with a price target of $150, offering about 6% upside from current levels.

GE Vernova, another new addition, was added for its leadership in electric power generation equipment. With global electricity needs rising, the company is well-positioned with a 40% market share in this sector.

“We are adding a position in GE Vernova Inc for three reasons: 1) leader in electrical generation equipment and services in an era of increasing electricity needs; 2) attractive valuation given potential margin expansion and top-line acceleration; and 3) from a portfolio perspective, adds exposure to Industrials and the powering AI theme,” the note states.

The stock is rated Overweight at Morgan Stanley, with a target price of $256.

On the other hand, the firm trimmed its position in Adobe to diversify its software exposure and reallocate to higher-growth stocks. While Adobe has underperformed relative to the broader market, Morgan Stanley still maintains a favorable view of the stock. However, it emphasized it would “rather have smaller exposure to many stocks than more concentrated exposure to a few software stocks.”

Lastly, UnitedHealth Group was removed from the portfolio due to its diminished weighting in the benchmark and slower growth prospects.

Although the stock performed well, delivering a 55% return since its last increase in 2021, Morgan Stanley sees more attractive opportunities in faster-growing sectors.

“We are removing the stock today because it has re-rated from 18x to 19x forward earnings, it is no longer a high weighting in the benchmark, and we see faster-growing opportunities elsewhere,” analysts explained.

This post appeared first on investing.com

Previous Post

US jobs report could firm or upend Fed “base case” of quarter-point cuts

Next Post

US regulator opens probe into more than 360,000 Ford SUVs over loss of braking

admin

admin

Next Post
US regulator opens probe into more than 360,000 Ford SUVs over loss of braking

US regulator opens probe into more than 360,000 Ford SUVs over loss of braking

Trending News

Long ZKIN: ZK International Group Surges 13% After Record Revenue, Targeting $0.75 Resistance as Bullish Momentum Continues

Long ZKIN: ZK International Group Surges 13% After Record Revenue, Targeting $0.75 Resistance as Bullish Momentum Continues

October 3, 2024
What defines a growth stock? Bernstein weighs in

What defines a growth stock? Bernstein weighs in

October 19, 2024
No French government before Monday evening, presidency says

No French government before Monday evening, presidency says

December 23, 2024
Subscribe to Insightful Word


    Recent News

    Vietnam firms to sign $2B deal for US agricultural products

    Vietnam firms to sign $2B deal for US agricultural products

    June 3, 2025
    Here’s why South Korea’s KOSPI Composite Index is soaring

    Here’s why South Korea’s KOSPI Composite Index is soaring

    June 3, 2025
    Asian markets close: Hong Kong leads gains, Nikkei flat; Sensex falls over 630 pts

    Asian markets close: Hong Kong leads gains, Nikkei flat; Sensex falls over 630 pts

    June 3, 2025
    US stocks unchanged on market open: S&P up 0.09%, Nasdaq up 0.19%

    US stocks unchanged on market open: S&P up 0.09%, Nasdaq up 0.19%

    June 3, 2025

    Recent News

    Vietnam firms to sign $2B deal for US agricultural products

    Vietnam firms to sign $2B deal for US agricultural products

    June 3, 2025
    Here’s why South Korea’s KOSPI Composite Index is soaring

    Here’s why South Korea’s KOSPI Composite Index is soaring

    June 3, 2025

    Latest News

    • Vietnam firms to sign $2B deal for US agricultural products
    • Here’s why South Korea’s KOSPI Composite Index is soaring
    • Asian markets close: Hong Kong leads gains, Nikkei flat; Sensex falls over 630 pts

    About Insightful Word

    • Contacts
    • Cookie Notice
    • Privacy Policy
    • Terms of Service
    • Trading tools
    • Contacts
    • Cookie Notice
    • Privacy Policy
    • Terms of Service
    • Trading tools

    Copyright © 2025 Insightfulword.com. All Rights Reserved.

    No Result
    View All Result
    • Investing
    • Stock
    • Economy
    • Politics

    Copyright © 2025 Insightfulword.com. All Rights Reserved.